L&T Finance Model Update

Research evidence excerpt

L&T Finance Model Update

Anuj Singla AC Asia Pacific Equity Research

(91-22) 6157-3590 14 July 2026 J P M O R G A N

anuj.singla@jpmchase.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

We rate LTF Neutral as we see tangible progress in asset quality,

especially in MFI, and improving visibility on growth. LTF

remains well positioned to benefit from the growth uptick in

2Ws/4Ws. On credit costs, while we expect a gradual decline,

LTF’s tech-enabled credit engine Cyclops seems to be driving

improved underwriting quality for new business with benign

early delinquency trends. We believe this should strengthen

portfolio resilience and drive credit cost improvement with a lag.

However, with much of this improvement already reflected in

YTD 1m 3m 12m valuations after a sharp rally, upside appears capped, in our view.

Abs 2.4% 17.7% 18.5% 58.7%

Rel 9.8% 15.2% 16.9% 62.2% Valuation

Our Sep-27 PT of Rs 340 is based on a two-stage Gordon growthCompany Data

model with a COE of 13.8%, RFR of 6.5% and Stage 1/2 ROE

Shares O/S (mn) 2,469

52-week range (Rs) 338.60-194.40 of 14.2%/15.2%. Our PT implies a FY28E P/B of 2.4x and P/E

Market cap ($ mn) 8,419 of 17.9x.

Exchange rate 95.32

Free float (%) 34.0%

3M ADV (mn) 6.17 Performance Drivers

3M ADV ($ mn) 18.9

Volatility (90 Day) 43

Index NIFTY

BBG ANR (Buy | Hold | Sell) 17|3|3

Key Metrics (FYE Mar)

Rs in millions FY26A FY27E FY28E FY29E

Financial Estimates

Net interest income 92,280 116,477 142,785 171,477

Non interest income 19,720 25,066 30,133 35,331

Operating expenses (44,530) (55,710) (68,024) (81,315)

Adj. PPOP 67,470 85,834 104,894 125,493

Provision for loan losses (27,510) (34,176) (41,459) (49,842)

Adj. PBT 39,960 51,657 63,435 75,651

Adj. net income 30,030 38,743 47,576 56,738

Adj.